Strategic Planning Report

03/03/2011
Strategic Planning Report

Natasha Gasic
Abstract: This strategic planning report discusses the developed mission statement, that
encapsulates Hedley Trayners’ vision of the organization. It sets the key organizational
values that are consistent with Hedley Trayners’ vision, and gives an overview of experts
consulted to execute these values. Also, a competitive analysis is put together to determine
Club Trains’ overall competencies, competitive advantages and disadvantages, with a
timeline to execute strategic objectives to improve all standards of the business.
C l u b T r a i n
03/03/2011
TABLE OF CONTENTS

1.0 EXECUTIVE SUMMARY 4
2.0 OVERVIEW O F T HE O RGANIZATION 5
3.0 OVERVIEW OF THE HEALTH AND FITNESS INDUSTRY 6
4.0 VISION STATEMENT 9

4.1 CLUB TRAINS’ VISION STATEMENT 9
5.0 MISSION STATEMENT 10

5.1 CLUB TRAINS’ MISSION STATEMENT 10
6.0 KEY ORGANIZATIONAL VALUES 11

6.1 KEY ORGANIZATIONAL VALUES 11
7.0 PREPARATION FOR PLANNING 12

7.1 PURPOSE OF THE PLAN 12
7.2 OVERVIEW OF EXPERTS 12
7.3 CONSULTATION PLAN 14
8.0 COMPETITIVE ANALYSIS 17

8.1 SWOT ANALYSIS 17
8.2 EXISTING AND POTENTIAL COMPETITORS AND ALLIES 18
EXISTING COMPETITORS AND ALLIES 18
POTENTIAL COMPETITORS AND ALLIES 19
8.3 POSSIBLE STRATEGIC ALLIANCES AND/OR JOINT VENTURES 20
8.4 PEST ANALYSIS 23
8.4(A) POLITICAL 24
8.4(B) ECONOMIC 24
8.4(C) SOCIAL 24
8.4(D) TECHNOLOGICAL 25
8.5 STRATEGIC OBJECTIVES 26
8.6 TIMELINE 31
REFERENCE LIST 32
ACADEMIC REFERENCES 32
NON-‐ACADEMIC REFERENCES 32
APPENDIX 1 33
APPENDIX 2 34
APPENDIX 3 35
APPENDIX 4 36
APPENDIX 5 37
APPENDIX 6 38
APPENDIX 7 39
APPENDIX 8 40
APPENDIX 9 41

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1.0 EXECUTIVE SUMMARY
This report evaluates evolvement of the leisure industry within Springfield and Australia,
with an exclusive focus on the effects that they have had on the fitness club industry.
Furthermore, the report examines the current issues facing Club Train and recommends
possible solutions for overcoming the challenges. Reforms within society due to current
media and medical commentary on Australian obesity levels, has been brought on by the
Australian Heart Foundation 2008, having a fundamental impact on the company and the
industry’s strategy. In response, it is recommended that Club Train change their marketing
strategies to tailor to the current market demands to reduce the risk of future competitors.
Furthermore, a critical aspect of company growth is focus on fostering a motivating
workplace for employees, and addressing the current human resources issues, which have
not been entirely concentrated on within the company. Currently, many specialised trainers
are unable to acquire complete flexibility for the reason that the club is understaffed within
its other revenues and rosters are conducted with split shift strategies. All employees abide
by the Individual Workplace Agreements (AWA) approved by the ‘Work Choices Legislation.’
It is recommended that Club Train implement a rostering and workplace agreement format
that enables the company to respond to more flexible working arrangements. In analysing
the company’s strategy towards workplace relations, and marketing, a strategic plan will be
illustrated for the next three years.
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2.0 OVERVIEW OF THE ORGANIZATION
Club Train, established in 1998, is one of Springfield’s largest fitness and personal wellbeing
centre. The organization began by offering a range of ‘lifestyle’ products, with a strong focus
on specialized programs for women, and new members in the early stages of their exercise,
thus the name Club ‘Train’. Today, the company specializes in extended facilities such as
swimming pool, extensive fitness programs, exclusive women zones, solarium, circuit
television, health and wellbeing professionals and beauty treatment facilities, together with
sophisticated catering and social programmes. Club Train derives most of their revenue from
charging annual membership fees. In addition to annual subscription income, joining fees —
a one-‐off initial payment — are common among the more expensive, exclusive clubs.
Additional income is made from catering, events and beauty treatments (Kate Evelyn, 2011).
Club Train is based in Springfield; however, in future, it has undertaken possibilities to
expand; with another gym based between Brisbane and Gold Coast region or Brisbane and
Ipswich. Over the years, Club Train has evolved into a certified fitness and personal
wellbeing centre with an outstanding reputation, impressive financial capacity and a flexible
approach to membership requirements and social lifestyle endorsements. With an extensive
program list, facilities; and health and wellbeing professionals available to members, the
company prides itself as a customer service focused organization which has built a strong
balance over more then a decade, with estimated annual turnover of more than a million.
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3.0 OVERVIEW OF THE HEALTH AND FITNESS INDUSTRY
The fitness industry has expanded significantly over the last decade, and it is estimated that
1.73 million Australians are now using fitness centre services. This increase in the fitness
industry is due to the society becoming more aware of their health and fitness needs and a
trend in becoming a healthier and fitter nation. The fitness industry impacts on the health
and fitness of Australians and delivers a range of long term social and economic benefits
across the community. The industry is dominated by a number of private small to medium
sized businesses and a couple large national corporations. The fitness industry is similar to
the services sector and has a high ratio of part-‐time employment, with over 80 per cent of
staff being employed on a casual or part-‐time basis. Over the last decade, growth within the
industry has estimated at a 7 per cent year-‐on-‐year growth between 2004-‐2005 and 2007-‐
2008. Australia’s fitness centre’s contribute extensively to the Australian economy,
employment directly and indirectly, and the key benefit of improving the health of the
community (Access Economics, 2009).
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Source: Access Economics, Fitness Australia July 2009, Report viewed 20 February 2011,
http://www.fitness.org.au/the_economic_contribution_of_fitness_centres_in_australia_rep
ort___july_09_2.pdf

Table 1.1 Overview of Workplace Economic
Contribution
Data gathered in a survey, conducted by the Access Economics, reported that Australia’s
fitness centres contribute a total of $872.9 million to the Australian economy in 2007-‐2008.
The industry holds a direct value added contribution of $486.5 million, with $374.2 million
being paid in wages and $112.3 million returned to capital owners as operational profits.
Indirect contribution value added achieved $386.4 million, representing the additional
economic activity generate by the fitness industry across the broader economy. The
employment contribution in 2007-‐2008 is estimated to be 17,081 on a full time basis, with
only 13,021 direct employees and 4060 indirect employees (Access Economics, 2009).
Further, data gathered in 2006 by the Australian Bureau of Statistics (refer appendix 1),
reported that the health and fitness industry significantly has a lower rate of persons
employed in sport and physical recreation occupations as their main job (12%). The lower
income is related to the higher incidence of part-‐time employment within the fitness
occupational sector (refer appendix 2). Demonstrating over half (52%) of all persons
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employed in sport and physical recreation occupations received a gross weekly income
between $250 and $799 (Australian Bureau of Statistics, 2006).

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4.0 VISION STATEMENT
4.1 CLUB TRAINS’ VISION STATEMENT
The Healthy individuals and communities, who embrace physical fitness as a lifestyle and
social activity.
4.2 CLUB TRAINS’ STRATEGIC VISION STATEMENT
Springfield community understands the increasing Australian obesity levels are a habitual
culture emergence that can be successfully prevented and treated with a social and lifestyle
change for a healthier future.
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5.0 MISSION STATEMENT
5.1 CLUB TRAINS’ MISSION STATEMENT
To provide every member, regardless of age or fitness level, a state-‐of-‐art gym that serves
through fitness philosophy, facilities, programs, and products and to introduce in the lives of
people everywhere, the value of health and fitness.
5.2 CLUB TRAINS’ STRATEGIC MISSION STATEMENT
To enhance the quality of life in the communities we serve by inspiring people to change
their lives by becoming more physically active. Expressing education, motivation and
support for lifestyle changes made by those within the Australian community, through,
planned valuable fitness and nutritional programs that obtain measureable, realistic goals
and optimize chance for a successful experience, regardless of age, sex, or fitness level.
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6.0 KEY ORGANIZATIONAL VALUES
6.1 KEY ORGANIZATIONAL VALUES
Organizational values are important as they reflect the personal and societal context within
which business operates its changes. Who you are as an organization, and what you stand
for, are becoming just as important as what you sell. The values that an organization lives by
are important to a variety of stakeholders:
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7.0 PREPARATION FOR PLANNING
7.1 PURPOSE OF THE PLAN
The purpose of strategic planning is to consult everyone who has input that determines
where the company needs to go, the targets that will make the company successful, identify
roadblocks and contingencies, keep the business on track to reach its targets and manage
departmental and individual performance as discussed by Peter J. Capezio, (2010).
7.2 OVERVIEW OF EXPERTS
Below is an overview of relevant experts that take part in the strategic consultation process,
and the desired input they play within the plan.
Independent Facilitator – External Consultant
An independent facilitators input is to attend an organizational meeting, to give structure
and direction, however does not retain the power to have a stake in the outcome of the
meeting or be involved in the decision making process. The independent facilitator is solely
there to provide everyone a fair chance to present their concerns and find opportunities to
look at agreements during the meeting.
Chief Executive Officer (Stakeholder) – Hedley Trayner
The chief executive officer (CEO) is the most important role within the management of an
organization. Hedley Trayners’ position of ‘chief executive officer,’ is a ‘sole proprietorship,’
meaning he is taking the singular organizational position that sets the direction and oversees
the operations of an organization.
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General Manager – Natasha Gasic
As a general manager, input includes applying direction and coordinating the day-‐to-‐day
operations of an organization, but also to administer control over all departments. It is the
general manager who takes direction from the (CEO), and takes the responsibility of
understanding the executives overall plan for the organization. Must be skilled at making
difficult decisions under pressure, having sound judgment, demonstrate ideas clearly to
executives, strong leadership skills, give clear, consistent directives and organize their
divisions to achieve excellent performance from their support staff. Also to ensure that the
company’s goals are understood by all employees and that the staff are working towards
achieving Club Train’s mission and vision statement.
Operations Manager – Chan Connell
The operations manager has the responsibility of developing an environment that improves
the efficiency of the employees and work force. This is done by, stimulating positive vibes,
teamwork and creativity among the employees. The operations manager must conduct
meetings with employees, listening and addressing the problems of each department and
leading the employees by example. Must deal with the client complaints and employee
grievances, within this role. Also, display effective leadership skills and needs to make
difficult, fast and effective decisions for helping to run the company smoothly and for solving
problems and preventing them from re-‐surfacing.
Administrative Staff
The administrative assistants work for managers and executives. The input of an
administrator is to collect and research relevant information and produce computer graphics
and reports for meetings. These include the day-‐to-‐day reporting, facts and figures to
determine and track budgets, and discuss issues with clients and staff members.
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Employees
Employees need to be involved as their input creates a shared vision, to the strategic plan
and allows management to find out what motivates them for a happier, more productive
workplace. Past projects of this nature had involved management personnel only and often
goals were not achieved because few employees felt motivated by the "top-‐down" directive.
In most cases employees are the first point of contact for customers, having motivated and
happy employees as a result will increase the services that they provide to Club Train
customers. This is critical as if a customer has a bad experience with an employee they might
choose not to come back to Club Train.
Suppliers
Suppliers are beneficial to the strategic plan as their input is valuable to the cost centre’s of
the plan. The information needed is the (1) cost of materials and services, (2) quality of
materials and services, and (3) speed at which the materials and services are delivered to
the organization. Helps to plan an effective timeline for the strategic plan.
Customers
Customer input relates directly to feedback that involves creating a satisfying experience for
customers at every interaction they may have with the company representatives.
7.3 CONSULTATION PLAN

Stakeholders Reason for How will What information needs to
Selection consultation occur be sourced
Employees Reflects on the Staff will be briefed (2) The employee sector is the
customer weeks prior to human capital, which affects
management scheduled staff the productivity of the
processes which meeting to discuss the organization as a whole. It is
enhance the internal and external important to extract needs
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customer value in issues they feel could and goals that will motivate
products and be improved. A staff staff to provide the most
service attributes. group meeting will be efficient skills, training and
held by the Operations knowledge and staff benefits
Manager. to achieve appropriate
performance.
Management Execute the Collaborating The managerial staff members
organization and workshops and work across the information
the culture discussions with all and organization capital.
attributes, create the administrative Information is sourced from
the vision and staff, managerial staff the systems, databases, and
mission and the CEO, Hedley networks, to develop an
statements, and Trayner. innovative process that
enforce processes. creates new products and
services, which enhances
customer value and in return
expands revenue
opportunities.
Members Members are the The consultation Need to obtain the basic
current and new occurs by completed requirements of customers
customers. These surveys, customer and how age and sexes
stakeholders are feedback or differentiate in needs, to
beneficial as they complaints, and personalize experiences and
produce and grow database inventories create a strategy where its
revenue. which monitors open to multiple channels and
customer behavior and mobile market due to the
demand patterns. implementation of
personalized marketing
strategies.
Experts Stakeholder/CEO, Involve the CEO in the Needs and requirements of
Hedley Trayner, workshops and the stakeholders’ values. The
sole proprietor, discussions, as he is strategic planning team is
who retains the the only stakeholder employed to fully execute the
sole decision able to make financial organizational directions
making and approvals and desired by the
approval for all decisions. Also, stakeholder/shareholder.
strategies provide all collected
proposed. information’s from
suppliers and
presentations for
proposals.
Suppliers Suppliers provide General Manager Main input from suppliers is
all sources all products cost of materials and services,
products/services and services needed, quality of materials and
that are existing, meetings with relevant services and speed at which
need to be suppliers to obtain the materials and services are
renewed or new quotes and product delivered to the company.
products. knowledge.
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Community These are people This type of Work-‐shopping to create a
Members from within the consultation is based mission statement that
community of the on how the gym encapsulates the vision of the
suburb or near by presents itself to new organization will define a
suburbs, being members. Marketing current target market and
targeted as and advertising is the future target market needs.
potential new selected consultation Deriving needs and
members. base type. expectations of future target
market, and their earnings
and expenses to formulate a
marketing solution.

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8.0 COMPETITIVE ANALYSIS

8.1 SWOT ANALYSIS
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8.2 EXISTING AND POTENTIAL COMPETITORS AND ALLIES
Existing Competitors and Allies
With a business organization it is important to understand your competitive market and
profile. Superior knowledge of existing competitors and allies offers a chance to construct a
competitive advantage. Club Trains competitors are obviously other centre’s that have
similar profiles, such as other health and fitness wellbeing centre’s, that offer professional
staff members who provide supervision and instruction for members if need be and run
programs that the centre offers, other exclusive facilities and other incentives that gives
members variety and fulfils needs. Organizations that Club Train competes against are other
highly exclusive, modern, state-‐of-‐art gym businesses, such as,
 Fitness First
 Goodlife
 Gensis
 Curves
 Fernwood
 Go Health Clubs
 Pure Health Clubs
 Jetts Health Clubs.
These are all potential competitors as they offer the same opportunities, services and
products as Club Train. Club Train must continuously profile these competitors to form
strategic objectives that capitalize on other organizations, and changes in the industry.
Understanding their market share position, their facilities, personnel and customer service
strategies will allow to compete with these organizations regardless of chain organization
sizes. Always being one step ahead, allows you to offer products, services and competitive
pricing to retain customer satisfaction and fulfilling their needs and expectations.
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Potential Competitors and Allies
Potential Competitors that have arisen, is the new national chain health and fitness
organization that lodged a development application with the local Council to open a ‘family
oriented’ facility at Springfield. Now, the new chain health and fitness organization will
definitely have an impact on competition as Club Train has formed a ‘cult’ market that is
targeted by the trendiness of the gym, and is burdening the ongoing memberships. Club
Train has not marketed strategically to involve the younger generation and families, yet is
surrounded by a large amount of educational institutes and could benefit from involving the
younger generation by ultimately becoming open to all ages and fitness levels and provide
services catering all their needs and expectations.
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8.3 POSSIBLE STRATEGIC ALLIANCES AND/OR JOINT VENTURES
Exploring possible strategic alliances and/or joint ventures is a form of understanding your
customer needs and expectations, aswell as always having the newest products and services
that entice satisfaction and loyalty. Strategic alliances happen when you identify your target
market needs and wants and identify that age, sex and fitness levels all have impacting
needs of their own (Dynamic Business, 2008).
 ‘Scientifically formulated a new, precisely balanced carbohydrate-‐electrolyte
beverage that would adequately replace the key components lost by Gator players
through sweating and exercise. They called their concoction ‘Gatorade’ (Gatorade
History, 2011).’
Forming an alliance with major water and drink provider, would be to approach and
ask for sponsorship, in return providing product loyalty and advertising for
Gatorade. Having a sponsor such as Gatorade would push the Club Train brand
awareness and trust within the fitness and health wellbeing industry to a whole new
competitive level. Gatorade, in return would receive retail market share within the
gym facilities and earn their profits through product sales, at the same time receive
advertising rights on staff clothing and t-‐shirts, and on all marketing and advertising
e.g. on Club Trains’ website, flyers and letter paperwork. Having a well-‐known brand
behind you is a quick road to success, word-‐of-‐mouth and expansion and people
have reassurance and trust a smaller company once they have a large corporations
products and services offered within their organization.
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 Equipment Suppliers are another form of venture, especially with agreements to
supply machinery and re-‐new every 3 years. A joint venture would be to agree on
terms and conditions for these supplies, providing the company sets your gym up
and a form of leasing is used, where the monthly repayments are an amount set at
10% of the organizations profits earned.
 Providing new services for members is always exciting – a joint venture would be
ideally formed with a ‘YMCA,’ for a new program called ‘BOOT CAMP.’ Boot camp
programs are a new upcoming trend in the fitness and health industry (The Daily
Telegraph, 2011). It is a form of outdoor training sessions combined of cardio and
strength-‐training using equipment such as suspension cables, boxing, and medicine
balls and other outside playing field equipment. It would be a separate cost to the
gym membership, as personal trainers run these programs in an outside park/or
area over a 6-‐8 weeks period of 3 sessions a week. Arrangements need to be made
with the ‘YMCA,’ and the personal trainers as each would be receiving a pay-‐check
from the profits made to cover costs of renting the space to conduct group training.
Boot camp is a program that would attract all age groups and fitness levels,
especially new members hope to lose weight. Different rates would apply to age and
occupations for members. E.g. children, student, and pension discounts would
apply.
 Just like the Boot Camp training is an alliance, another upcoming trend is ‘Zumba.’
An alliance can be structured with a professional zumba business, to provide poster
and flyer advertising within Club Train for zumba dance classes at the front counter
and entrance area, women locker rooms, toilets and exercise areas, promoting a
10% discount for classes booked through the gym. In return, the agreement would
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provide a 10% discount on staff and client jointing from the zumba business. This
strategy is formed to engage new women memberships within the organization and
keep the variety going for members (The latest exercise and fitness trends, 2010).
 Another reform that would fix the staffing issues, would be to make an alliance with
‘sole contractors,’ who are ‘personal trainers,’ that the gym can provide a training
facility for, advertising and recommendations to members to encourage personal
training. Advertising as a service provided would done through the gym on a
billboard with personal trainer advertisements and contact details for current
members, and on websites, flyers and promotional packages for new members.
Personal Trainers’ would cover the cost of the space rent, advertising and gaining
clients by splitting earnings by 50% with the organization. An incentive would be
placed for personal trainers who join 3 members a week, from personal
advertisement and word-‐of-‐mouth, would decrease the earning split percentage to
40% with the organization.
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8.4 PEST ANALYSIS
A pest analysis is one of the most popular and effective methods of analyzing the external
factors that could impact on a business within a specific industry. Commonly, a pest analysis
will be used alongside other analyses that focus on internal factors. The combination of the
pest analysis with other factors will allow a company to create a strategic management plan
of how to move its business forward in a way that maximizes the opportunities available to
it, externally. A pest analysis comprises of four factors, political, economic, social, and
technological.
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8.4(a) Political
Political issues as part of the pest analysis include all sorts of factors that normally derive
from the government in the form of policies or legislation. For the purposes of the pest
analysis of a health club, there is little in the way of trade restrictions and tariffs to be
concerned about. Many employees within the organization are part time workers. With the
government currently encouraging students to work on a part time basis at least, the health
club industry should see a growing number of workers available. As peak times within a
health club are generally mornings, evenings and weekends, this could certainly fall in line
with the political drive to encourage students to work.

8.4(b) Economic
The pest analysis then goes on to look at the economic impact on the health club industry.
Key areas for the pest analysis include inflation rates, interest rates and general economic
conditions. Health clubs are usually considered luxury products; therefore, when there is an
economic downturn, the number of customers is likely to reduce. Where individuals have
less disposable income due to high inflation levels, they will be less inclined to spend money
on luxuries. The current economic climate is relatively weak and individuals are not feeling
sufficiently wealthy to spend large amounts of their income on health club services. As the
pest analysis has indicated, this to be a particular threat to the health club industry and this
should be something that management looks at mitigating. Typically, this could include
reduction in costs in relation to part time staff or generating additional revenue with
discounts and enhanced services for clients.
8.4(c) Social
When conducting a pest analysis on health clubs, the area of socio-‐culture presents a much
more positive outlook. This part of the pest analysis considers demographics such as age and
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wealth as well as issues including career aspirations and general interest in health issues. In
this case, the health club industry is doing extremely well. With a growing number of young
women carving lucrative careers, there is an increasing demand for health club facilities.
There is a growing demand from younger and older people for health club services and an
increasing ability by these individuals to be able to afford such services. These changing
demands have led to substantial diversification and new opportunities within the health club
industry such as health and fitness weekends and sports therapy.
8.4(d) Technological
On the face of it, technological developments may not appear to be particularly relevant to a
health club business. However, in conducting a more detailed pest analysis, it becomes clear
that the health club industry as it stands has relatively high barriers to entry by virtue of the
level of expertise and technology required. As established in the earlier part of the pest
analysis, consumers are becoming more demanding and experimental in the area of health
and fitness. As such, there is a growing need for health clubs to ensure not only that they
have the latest technology, but also that staff members are suitably trained to use such
equipment. The pest analysis for technologies relates to the socio-‐cultural issues, showing
that in order to establish a truly competitive position, companies will have to offer the latest
technology and a wide range of options (refer appendix 3).
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8.5 STRATEGIC OBJECTIVES
Strategic Objective 1
Human Resources; selection and development of employees; (refer appendix 4) must be
addressed immediately as it is an ongoing subject that needs constant improvement to keep
the organization growing.
 Have a comprehensive career development program
 Achieve an employee turnover rate less than 5%
 Define and communicate organization roles, responsibilities, and expectations for all
employees
 One month – to meet with all employees within Club Train to understand their
current job satisfaction, any future ambitions and if they could suggest any
improvements for the club
 One month after that – to review the employees responses and put actions plans
into place as a result of employee needs/feedback
 3 months – to put career plans into place and start working towards meeting some
of employees and company’s goals
 6 months – review employee satisfaction
 12 months – review turnover rates and cross check improvements
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Market standing; desired share of the present and new markets; (refer appendix 5)
 Have a comprehensive business development plan for market segmentation
 Have 3 major marketing strategies running in 3 months, internet based marketing,
promotional marketing, and educational marketing
 Each market segmentation group to grow by 10% in new memberships annually
 One month – to complete research of target marker, understand any future
ambitions and if they could suggest any improvements for the club
 One month after that – to create and review the business marketing segmentation
plan
 3 months – to place plan into action and start working towards meeting some of
market segmentation goals
 6 months – review segmentation strategy
 12 months – review turnover rates and cross check improvements
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Innovation: development of new goods and services, and of skills and methods required
to supply them; (refer appendix 6)

 Have a comprehensive business development plan for strategic alliances/joint
ventures
 Develop strategic alliances/joint ventures with businesses that will benefit your
products and services
 Provide customers with variety in the latest products, enticing with ‘members
only’ benefit incentives
 Increase business revenues by 10% at least
 One month – to complete research of new fitness trends and possible strategic
alliances, suggest any improvements for the club
 One month after that – to create and review the business strategic alliance plan
 3 months – to place plan into action
 Quarterly Review of strategic alliance performance
 Annual Review of strategic alliance performance – review turnover rates and
cross check improvements
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Physical resources: equipment, and facilities and their use; (refer appendix 7)
 Have all digital equipment
 Have a replacement equipment financing plan
 Have a technology development and implementation plan
 One month – to complete research of fitness technologies, suggest any
improvements for the club
 Four months after that – create and review the business development plan
 One month – to place agreement and contract
 Quarterly Review of equipment performance and maintenance
 Annual Review of equipment performance and maintenance, and further
upgrades
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Financial resources; identification of the sources of capital and their use; (refer appendix
7)
 Achieve $2 million in annual revenues with $840 thousand in profits
 Maintain net profit rate equal to or better than the best national companies in the
health club industry
 Have investment policies and financial procedures to foster aggressive growth and
profitability
 Have a comprehensive business development plan for expansion
 Performance reviews on all products and services provided within facility
 Weekly Financial Reviews
 Monthly Financial Reviews
 Quarterly Financial Reviews
 Annual Financial Reviews
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8.6 TIMELINE
A timeline has been formed to outline the key steps that will need to be undertaken to
implement and monitor the strategic plan (refer appendix 8).

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REFERENCE LIST

Academic References

Australian Bureau of Statistics, (2006). Sport and Recreation: A Statistical Overview, Australia.
Summary of findings (No. 4156.0). Canberra, Australian Capital Territory: Embargo. Report viewed 20
February 2011, from AusStats database.

Access Economics, Fitness Australia July 2009, Report viewed 20 February 2011,
http://www.fitness.org.au/the_economic_contribution_of_fitness_centres_in_australia_report___jul
y_09_2.pdf

Peter J. Capezio, (2010). Manager’s Guide to Business Planning. Brief Case Books. Fail to Plan, Plan to
Fail (pp. 1-‐19). United States of America: The McGraw-‐Hill Companies.

Non-‐Academic References

Dynamic Business, 2008, What is a joint venture?, Article sited 23 February 2011,
http://www.dynamicbusiness.com.au/export/what-‐is-‐a-‐joint-‐venture.html

Female Forum, 2010, Exercise and Fitness, The Latest Exercise and Fitness Trends, from
http://www.femaleforum.com/s/article/the_latest_exercise_fitness_trends/

Gatorade, History, Retrieved 24 February, 2011, from http://www.gatorade.com/history/default.aspx

Kate Evelyn (2011), How Does a Gym Make Money?, eHow Business and Finance, 25 February 2011,
http://www.ehow.com/how-‐does_4600515_gym-‐money.html

The Daily Telegraph, 2011, New fitness trends to wow you in 2011, from
http://www.dailytelegraph.com.au/lifestyle/body-‐soul/new-‐fitness-‐trends-‐to-‐wow-‐you-‐in-‐
2011/story-‐e6frf01r-‐1225980503567

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APPENDIX 1

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APPENDIX 2

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APPENDIX 3

PEST analysis of Club Train
The relevant points are highlighted that have a strong influence on Club Train.
Political Economic
• ecological/environmental issues • home economy situation

• current legislation home market • home economy trends
• future legislation • overseas economies and trends
• European/international legislation • general taxation issues
• regulatory bodies and processes • taxation specific to product/services
• government policies • seasonality/weather issues
• government term and change • market and trade cycles
• trading policies • specific industry factors
• funding, grants and initiatives • market routes and distribution trends
• home market lobbying/pressure groups • customer/end-user drivers
• international pressure groups • interest and exchange rates
• wars and conflict • international trade/monetary issues
Social Technological
• lifestyle trends • competing technology development

• demographics • research funding
• consumer attitudes and opinions • associated/dependent technologies
• media views • replacement technology/solutions
• law changes affecting social factors • maturity of technology
• brand, company, technology image • manufacturing maturity and capacity
• consumer buying patterns • information and communications
• fashion and role models • consumer buying
• major events and influences mechanisms/technology
• buying access and trends • technology legislation
• ethnic/religious factors • innovation potential
• advertising and publicity • technology access, licensing, patents
• ethical issues
35
APPENDIX 4
HUMAN RESOURCES GOAL PLAN | 1
May 2011,

I will have obtained all notes on the staff meetings that were conducted by the Operations Manager – Chan Conell, discussing
the working conditions which are resulting such a high turnover in staff, finding out staff needs and expectations of their
employer, and reviewing staff (individual) goals.

 Incentives, such as free gym memberships, can be provided to motivate staff and make them feel apart of the
organization.
 Create their performance criteria’s and job descriptions aliened with their needs and expectations of their employer
and managers.
 Performance reviews, wage reviews, achievable goals, ongoing training and regular staff meetings provided for
organizations’ staff members to ensure the high staff turnover is being addressed appropriately.

Benefits from achieving this goal

1. Employee satisfaction creates motivated team players.
2. Retains and attracts the best employees’ for the business growth.
3. Employee loyalty and dedication.
4. Higher performance achievable.
5. Results in more ideas on how to improve the business on a day-‐to-‐day basis.

Possible Obstacles Possible Solutions
Rosters Define staff needs and maximum hours able to undertake and
rostering accordingly to performance.
Performance criteria’s Clear job descriptions and training provided to conduct
performance reviews.
Individual Goals Action Plan that describes steps that need to be taken to
achieve the goals.
Specific Action Steps for Achieving this Goal
Target Date Date Completed
Discussion/ Staff Meeting, conducted by Operations Manager March April
Relevant staff requirements reported to General Manager April April
Training module and incentives created by General Manager April May
Workshops with Consultation Team and CEO, approval gained May May
Staff Meeting, explaining job descriptions, training module and incentives clearly May June
Individual goals of staff members set, consultation via Operations Manager March April
Individual Action Plans for staff members May August
Individual Career Plans for individual staff members August December
Training provided by the Operations Manager May
Performance reviews and discussions August 2011 March 2012
36
APPENDIX 5
MARKET STANDING GOAL PLAN | 2
May 2011,

I will have obtained all research completed by the Administrative staff, on the demographics of identified customers, segmenting
overall market and research market for existing and new competition areas. Plan is to develop an internet based website for
online marketing, advertising on a company car, advertising through strategic alliances, and advertising through educational
speeches at customer venues.

 Incentives, for corporate companies.
 Incentives for women to join gym through careful strategic alliances
 Incentives for children/students, and families.


1. Growth within market share
2. Targeting current and potential customers, beating competition
3. Adding value to company profile and community awareness
4. Higher performance achievable within revenue due to new memberships

Competition Customers Offer free weekly gym trial.
Offer to beat competitor prices, on 6 month contracts.
Cost Offer student concessions, pensioner concessions, corporate
group concessions and discounts through strategic joint
ventures.
Unsuccessful Marketing Strategy Research possible areas of failure, what your competitor may
be doing, customer feedback, staff performance. Find
solutions to handle these risks.
Discussion, conducted by General Manager March March
Assigned research for existing and new customer needs assigned to Administrative Staff April May
Marketing strategy and customer incentives created by General Manager April May
Workshops with Consultation Team and CEO, approval gained May May
Costs of marketing/ advertising tools are sourced and approved by the CEO March May
Internet marketing strategy begins June September
Marketing promotional flyers and brochures completed ready for dispatch June September
Approach corporate companies by flyers and organize promotional and educating speech July September
night
Approach educational institutions and organize educational health and fitness speeches, July September
providing flyers and brochures on gym
Advertisement prepared for joint venture July September
37
APPENDIX 6
INNOVATION GOAL PLAN | 3
December 2012,

I will have complete all research, on the possible joint ventures and alliances, to approach with intention to create agreements
that benefit both business and create marketing strategies to promote each other through our venues.

 Incentives, for corporate companies joining forces – service discounts
 Incentives for clients through joint ventures for discount rates
 Products and services distributed easily


1. Make brand more distinctive, adding value to company profile
2. Create a more emotional connection with clients
3. Improve customer service and satisfaction
4. Increase member rates
5. Increase profit margins

Cost Offer discounted rates through joint ventures that you will
only receive if you are part of both.
Create specific packages for clients of joint ventures.
Diluting Company Profile Joint ventures are designed to provide variety, do not all need
to be run from the gym, are possible alliances to benefit gym
members and increase gym sign ups, but can be revoke at any
given time if the performance of the joint venture is not
benefiting the strategic marketing to customers.
Discussion, conducted by General Manager May May
Assigned research for possible alliances and joint ventures May July
Selected beneficial joint and strategic approach created by General Manager July August
Business Plan Development, approval of CEO August December
Appointments with joint ventures May July
Written Agreements drawn up legally November December
Marketing promotional flyers and brochures completed ready for dispatch December
38
APPENDIX 7
PHYSICAL RESOURCES GOAL PLAN | 4
June 2011,

I will have complete all research, on the possible joint ventures with a equipment supplier, to approach with intention to create
agreements that benefit both business. Ideal agreement would be to create a contract with the equipment supplier to provide
and set up the gym with the latest technology and machinery, with a renewal of products every 3/4 years, on the terms that
repayments are made on a monthly basis, being 10% of the gym profits. Use a form of leasing.

 Lease products to maintain competing technology development, make replacement of technology and solutions; and
the dispose of maturity of technology substantially easy.


1. Make brand more distinctive, adding value to company profile
2. Create a more emotional connection with clients
3. Improve customer service and satisfaction
4. Increase member rates
5. Increase profit margins

Usage Equipment supplier must provide appropriate training
packages and instruction manuals for equipment use.
Maintenance Provide quarterly services on products or whenever there is a
malfunction with equipment.
Discussion, conducted by General Manager May May
Assigned research for equipment suppliers May June
Strategic approach and agreement proposal created by General Manager June October
Approval gained from CEO October October
Appointments with joint venture – equipment suppliers October October
Written Agreements drawn up legally November November
39
APPENDIX 8
FINANCIAL RESOURCES GOAL PLAN | 5
March 2011,

I will have obtained all financial reviews from the Administrative staff experts to assess the budgeting, accounting, the
management of financial resources and guidelines that shape the organizational budgetary processes. These will allow the
following process,

 Develop a Budget
 Allocate, authorise and monitor expenditure
 Relevant financial management information systems


1. Management of financial resources to achieve objectives, accounting practises and the use of key accrual statements
2. Manage and evaluate major cost items and how to build, analyse and respond to changes in the budget
3. Assessing performance and use of information management systems
4. Allocations of funds, monitoring and reporting of their expenditure
5. Optimum service delivery and the re-‐allocation of resources and funding

Cost Stakeholders’ approval of cost, all exercises must be carefully
research to justify cost
Budget Budgets are a estimated figure, they change all the time, allow
for increase/decrease to budget distributions
Risk Manage risk carefully with a back up, use strategies that pay
themselves off, rather then investing and hoping for a return.
E.g. leasing equipment supplies with a monthly repayment of
10% of profits earned
Business Plan Development March 2011 May 2015
Cost Plan March April
Budget Distribution Plan March May
Estimated Revenue Return March April
Risk Management Plan March April
Weekly Review Weekly Weekly
Monthly Review Monthly Monthly
Quarterly Review Quarterly Quarterly
Annual Review Annual Annual
40
APPENDIX 9

41

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Strategic Planning Report

TABLE OF CONTENTS

2.0 OVERVIEW O F T HE O RGANIZATION 5

3.0 OVERVIEW OF THE HEALTH AND FITNESS INDUSTRY 6

4.0 VISION STATEMENT 9

5.0 MISSION STATEMENT 10

6.0 KEY ORGANIZATIONAL VALUES 11

7.0 PREPARATION FOR PLANNING 12

8.0 COMPETITIVE ANALYSIS 17

illustrated for the next three years.

3.0 OVERVIEW OF THE HEALTH AND FITNESS INDUSTRY

community (Access Economics, 2009).

between $250 and $799 (Australian Bureau of Statistics, 2006).

4.1 CLUB TRAINS’ VISION STATEMENT

4.2 CLUB TRAINS’ STRATEGIC VISION STATEMENT

change for a healthier future.

5.1 CLUB TRAINS’ MISSION STATEMENT

people everywhere, the value of health and fitness.

5.2 CLUB TRAINS’ STRATEGIC MISSION STATEMENT

6.1 KEY ORGANIZATIONAL VALUES

are important to a variety of stakeholders:

7.1 PURPOSE OF THE PLAN

7.2 OVERVIEW OF EXPERTS

and the desired input they play within the plan.

Independent Facilitator – External Consultant

look at agreements during the meeting.

Chief Executive Officer (Stakeholder) – Hedley Trayner

the operations of an organization.

achieving Club Train’s mission and vision statement.

Operations Manager – Chan Connell

problems and preventing them from re-­‐surfacing.

choose not to come back to Club Train.

7.3 CONSULTATION PLAN

Existing Competitors and Allies

highly exclusive, modern, state-­‐of-­‐art gym businesses, such as,

 Pure Health Clubs

 Jetts Health Clubs.

services catering all their needs and expectations.

needs of their own (Dynamic Business, 2008).

 ‘Scientifically formulated a new, precisely balanced carbohydrate-­‐electrolyte

products and services offered within their organization.

10% of the organizations profits earned.

Telegraph, 2011). It is a form of outdoor training sessions combined of cardio and

gym membership, as personal trainers run these programs in an outside park/or

facility for, advertising and recommendations to members to encourage personal

training. Advertising as a service provided would done through the gym on a

clients by splitting earnings by 50% with the organization. An incentive would be

40% with the organization.

with the political drive to encourage students to work.

discounts and enhanced services for clients.

technology and a wide range of options (refer appendix 3).

the organization growing.

 Have a comprehensive career development program

 Achieve an employee turnover rate less than 5%

improvements for the club

into place as a result of employee needs/feedback

of employees and company’s goals

 6 months – review employee satisfaction

 12 months – review turnover rates and cross check improvements

 Have a comprehensive business development plan for market segmentation

 Have 3 major marketing strategies running in 3 months, internet based marketing,

promotional marketing, and educational marketing

problems and preventing them from re-‐surfacing.

highly exclusive, modern, state-‐of-‐art gym businesses, such as,

 ‘Scientifically formulated a new, precisely balanced carbohydrate-‐electrolyte